Children rarely have a full grasp of the cost of big purchases.
This is evidenced by research from Legal & General, which found 53 per cent of six-year-olds think a house costs £10,000 or less.
As well as this, they typically expect to earn only £100 a year – a very tiny amount indeed.
Some 80 per cent of those questioned think they will be homeowners by 25, while 25 per cent believe they could get by on £10 and 19 per cent think the only reason money is around is to buy sweets.
Simon Ellis, Managing Director of Legal & General Investments, observed the light-hearted study showcases the naivety of most kids when it comes to money matters.
However, he added parents need to remember they have a responsibility to educate their offspring about the value of cash.
"By teaching children the basics of managing savings, we pass on fundamental skills that will help them to mature into young adults," Mr Ellis remarked.